Bill Start

Amended
IN
Senate
March 30, 2016

CALIFORNIA LEGISLATURE—
2015–2016 REGULAR SESSION

Senate Bill

No. 1173

Introduced by Senator Hertzberg

February 18, 2016

An act to amend Section 1101.3 of the Civil Code, relating to water conservation. An act to amend Sections 1101.1, 1101.2, 1101.3, 1101.5, and 1101.7 of, and to add Sections 1101.55 and 1101.65 to, the Civil Code, and to amend Section 81005 of the Water Code, relating to water conservation.

LEGISLATIVE COUNSEL'S DIGEST

Existing law requires the replacement of includes specified requirements to replace plumbing fixtures that are not water conserving, defined as “noncompliant plumbing fixtures,” in to residential and commercial real property built and available for use on or before January 1, 1994, as specified. Existing law defines “commercial real property,” “multifamily residential real property,” and “water-conserving plumbing fixture” for purposes of these provisions.

This bill would amend the definition of specified noncompliant plumbing fixtures to lower water usage thresholds.

This bill would apply these requirements, as specified, to commercial real property regardless of when it was built.

Existing law requires on and after January 1, 2014, replacement of noncompliant plumbing fixtures in specified multifamily residential real property and commercial real property. Existing law requires on or before January 1, 2019, replacement of noncompliant fixtures in all multifamily residential real property and commercial real property.

This bill would, for commercial property, instead require, on and after
January 1, 2017, the replacement of any noncompliant plumbing fixture or fitting in specified additions, alterations, and improvements to commercial real property and, on or before January 1, 2021, the replacement of any noncompliant plumbing fixture or fitting in all commercial real property in accordance with a specified schedule based on the amount of floor space. The bill would define “noncompliant plumbing fixture” and “water-conserving plumbing fixture” for purposes of these requirements to refer to compliance with the State Energy Conservation and Development Commission standards. The bill would also encourage retail water providers to provide on-bill financing options to customers to assist with funding for water efficiency improvements and would make legislative findings in support of these provisions.

Existing law establishes the CalConserve Water Use Efficiency Revolving Fund and provides that the moneys in the fund are available to the Department of
Water Resources, upon appropriation by the Legislature, for the purpose of water use efficiency projects. Existing law requires moneys in the fund to be used for specified purposes including for local agencies, as defined, to provide low-interest loans to customers to finance the installation of onsite improvements to repair or replace, as necessary, cracked or leaking water pipes to conserve water.

This bill would authorize county offices of education and governing boards of school districts to receive moneys from the fund by including those entities in the definition of a local agency.

Digest Key

Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
NOYES
Local Program:
NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Section 1101.1 of the Civil Code is amended to read:

1101.1.

The Legislature finds and declares all of the following:

(a) Adequate water supply reliability for all uses is essential to the future economic and environmental health of California.

(b)Environmentally sound strategies to meet future water supply and wastewater treatment needs are key to protecting and restoring aquatic resources in California.

(c)There is a pressing need to address water supply reliability issues raised by growing urban areas.

(d)Economic analysis by urban water agencies has identified urban water conservation as a cost-effective approach to addressing water supply needs.

(e)There are many water conservation practices that produce significant energy and other resource savings that should be encouraged as a matter of state policy.

(f)Since the 1991 signing of the “Memorandum of Understanding Regarding Urban Water Conservation in California,” many urban water and wastewater treatment agencies have gained valuable experience that can be applied to produce significant statewide savings of water, energy, and associated infrastructure costs. This experience indicates a need to
regularly revise and update water conservation methodologies and practices.

(b) California is in a severe drought, and in 2014 and 2015 the Governor issued executive orders declaring a drought emergency and calling for mandatory water conservation.

(c) In 2015, the State Water Resources Control Board adopted emergency regulations calling for a number of water conservation measures, including a mandatory water use reduction requirement on urban water suppliers.

(d) The most recent drought has highlighted
the state’s water reliability challenges and vulnerabilities, and the importance of water conservation as a short- and long-term strategy to ensure that there are adequate water supplies for the environment and people in the state.

(e) There is a pressing need to encourage the implementation of sustainable water conservation efforts and practices that will persist after the drought as a matter of state policy.

(f) There have been many recent advances in water-efficient technologies, including advances in the efficiency of indoor water plumbing fixtures, such as toilets, faucets, and showerheads.

(g) To address these concerns, it is the intent of the Legislature to require that residential and commercial
real property built and available for use or occupancy on or before January 1, 1994, be equipped with water-conserving plumbing fixtures.

(h) It is the intent of the Legislature to require that commercial real property be equipped with water-conserving plumbing fixtures, and that the retrofitting of water-conserving plumbing fixtures be prioritized.

(i) Commercial real property is responsible for the highest number of plumbing fixtures per capita, and retrofitting plumbing fixtures to comply with new standards can help save California over 40 billion gallons of water per year.

(j) In addition to commercial real property, there are considerable water savings opportunities that can be achieved by assisting California’s public schools with retrofitting old and less efficient plumbing and irrigation devices. California’s public schools have a large number of plumbing and irrigation devices and fixtures and often lack the financial ability to retrofit them to make them more water efficient. Retrofitting just plumbing fixtures in schools has the potential to save over six billion gallons of water per year.

(k) The CalConserve Water Use Efficiency Revolving Fund established pursuant to Section 81020 of the Water Code was created to provide low-interest loans and grants to local agencies for water efficiency projects; however, it does not include public schools in the types of public agencies that could participate in the fund.

(l) It is the intent of the Legislature to add public schools to the list of public agencies that are authorized to participate in the CalConserve Water Use Efficiency Revolving Fund.

(h)

(m) It is further the intent of the Legislature that retail water suppliers are encouraged to provide incentives, financing mechanisms, and funding to assist property owners and schools with these retrofit obligations.
retrofits and upgrades, as well as to provide customers with information regarding private financing opportunities, such as on-bill financing.

(n) It is further the intent of the Legislature to encourage financial institutions to provide on-bill financing opportunities to facilitate the financing of retrofits and upgrades.

SEC. 2.

Section 1101.2 of the Civil Code is amended to read:

1101.2.

Except as provided in Section 1101.7, this article shall apply to residential and commercial real property built and available for use on or before January 1, 1994. 1994, and commercial real property.

SEC. 3.

Section 1101.3 of the Civil Code is amended to read:

1101.3.

For the purposes of this article:

(a) “Commercial real property” means any real property that is improved with, or consisting of, a building that is intended for commercial use, including hotels and motels, that is not a single-family residential real property or a multifamily residential real property.

(b) “Multifamily residential real property” means any real property that is improved with, or consisting of, a building containing more than one unit that is intended for human habitation, or any mixed residential-commercial buildings or portions thereof that are intended for human habitation. Multifamily residential real property includes residential hotels but does not include hotels and motels that are not
residential hotels.

(c) “Noncompliant Except as provided by Section 1101.55, “noncompliant plumbing fixture” means any of the following:

(1) Any toilet manufactured to use more than 1.6 gallons of water per flush.

(2) Any urinal manufactured to use more than one gallon of water per flush.

(3) Any showerhead manufactured to have a flow capacity of more than 2.5 gallons of water per minute.

(4) Any interior faucet that emits more than 2.2 gallons of water per minute.

(d) “Single-family residential real property” means any real property that is improved with, or consisting of, a building containing not more than one unit that is intended for human habitation.

(e) “Water-conserving Except as provided by Section 1101.55, “water-conserving plumbing fixture” means any fixture that is in compliance with current building standards applicable to a newly constructed real property of the same type.

(f) “Sale or transfer” means the sale or transfer of an entire real property estate or the fee interest in that real property estate and does not include the sale or transfer of a partial interest, including a
leasehold.

SEC. 4.

Section 1101.5 of the Civil Code is amended to read:

1101.5.

(a) On or before January 1, 2019, all noncompliant plumbing fixtures in any multifamily residential real property and in any commercial real property shall be replaced with water-conserving plumbing fixtures.

(b) An owner or the owner’s agent may enter the owner’s property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with notice requirements of Section 1954.

(c) On and after January 1, 2019, the water-conserving plumbing fixtures required by this section shall be operating at the manufacturer’s rated water consumption at
the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owner’s agent if the tenant becomes aware that a water-conserving plumbing fixture within his or her unit is not operating at the manufacturer’s rated water consumption. The owner or owner’s agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owner’s agent.

(d) (1) On and after January 1, 2014, all noncompliant plumbing fixtures in any multifamily residential real property and any commercial real
property shall be replaced with water-conserving plumbing fixtures in the following circumstances:

(A) For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.

(B) For building alterations or improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.

(C) Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building
permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.

(2) Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.

(e) On and after January 1, 2019, a seller or transferor of multifamily residential real property or of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (a) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional
documents.

SEC. 5.

Section 1101.55 is added to the Civil Code, immediately following Section 1101.5, to read:

1101.55.

(a) Notwithstanding Section 1101.3, for purposes of this section the following definitions shall apply:

(1) “Noncompliant plumbing fixture” means any fixture or fitting that is not in compliance with the State Energy Conservation and Development Commission Appliance Efficiency Regulations (Article 4 (commencing with Section 1601) of Chapter 4 of Division 2 of Title 20 of the California Code of Regulations) for toilets, urinals, and faucets.

(2) “Water-conserving plumbing fixture” means any fixture or fitting that is in compliance with the State Energy Conservation and Development Commission Appliance Efficiency Regulations (Article 4 (commencing with Section 1601) of Chapter 4
of Division 2 of Title 20 of the California Code of Regulations) for toilets, urinals, and faucets.

(b) On or before January 1, 2021, all noncompliant plumbing fixtures in any commercial real property shall be replaced with water-conserving plumbing fixtures.

(c) An owner or the owner’s agent may enter the owner’s property for the purpose of installing, repairing, testing, and maintaining water-conserving plumbing fixtures required by this section, consistent with notice requirements of Section 1954.

(d) On and after January 1, 2021, the water-conserving plumbing fixtures required by this article shall be operating at the manufacturer’s rated water consumption at the time that the tenant takes possession. A tenant shall be responsible for notifying the owner or owner’s agent if the tenant becomes aware that a
water-conserving plumbing fixture within his or her unit is not operating at the manufacturer’s rated water consumption. The owner or owner’s agent shall correct an inoperability in a water-conserving plumbing fixture upon notice by the tenant or if detected by the owner or the owner’s agent.

(e) (1) On and after January 1, 2017, all noncompliant plumbing fixtures in any commercial real property shall be replaced with water-conserving plumbing fixtures in the following circumstances:

(A) For building additions in which the sum of concurrent building permits by the same permit applicant would increase the floor area of the space in a building by more than 10 percent, the building permit applicant shall replace all noncompliant plumbing fixtures in the building.

(B) For building alterations or
improvements in which the total construction cost estimated in the building permit is greater than one hundred fifty thousand dollars ($150,000), the building permit applicant shall replace all noncompliant plumbing fixtures that service the specific area of the improvement.

(C) Notwithstanding subparagraph (A) or (B), for any alterations or improvements to a room in a building that require a building permit and that room contains any noncompliant plumbing fixtures, the building permit applicant shall replace all noncompliant plumbing fixtures in that room.

(2) Replacement of all noncompliant plumbing fixtures with water-conserving plumbing fixtures, as described in paragraph (1), shall be a condition for issuance of a certificate of final completion and occupancy or final permit approval by the local building department.

(f) In addition to the other requirements in this section, all noncompliant plumbing fixtures in any commercial real property shall be replaced with water-conserving plumbing fixtures as follows:

(1) For commercial real property with floor area of more than 50,000 square feet by January 1, 2018.

(2) For commercial real property with floor area of between 25,000 and 50,000 square feet by January 1, 2019.

(3) For commercial real property with floor area of between 10,000 and 25,000 square feet by January 1, 2020.

(4) For commercial real property with floor area of less than 10,000 square feet by January 1, 2021.

(g) Notwithstanding anything to the contrary, this section shall
not require the replacement of a noncompliant plumbing fixture where it can be demonstrated that the fixture meets the definition of a water-conserving plumbing fixture in Section 1101.3 and was installed after January 1, 2010.

(h) On and after January 1, 2019, a seller or transferor of commercial real property shall disclose to the prospective purchaser or transferee, in writing, the requirements of subdivision (b) and whether the property includes any noncompliant plumbing fixtures. This disclosure may be included in other transactional documents.

SEC. 6.

Section 1101.65 is added to the Civil Code, immediately following Section 1101.6, to read:

1101.65.

(a) Retail water providers are strongly encouraged to provide on-bill financing options to customers to assist with funding for water efficiency improvements.

(b) Financial institutions are strongly encouraged to provide water efficiency improvement financing options that allow borrowers to align the repayment term with the cost savings from installing water-efficient devices.

(c) Retail water suppliers shall annually provide customers with information regarding available financing options for the installation or retrofitting of plumbing fixtures and irrigation devices. Those financing options may include any local grant funds, rebates, on-bill financing options, or other
incentive and assistance programs.

SEC. 7.

Section 1101.7 of the Civil Code is amended to read:

1101.7.

This article shall not apply to any of the following:

(a) Registered historical historic sites.

(b) Real property for which a licensed California state-licensed plumber certifies that, due to the age or configuration of the property or its plumbing, installation of water-conserving plumbing fixtures is not technically feasible.

(c) A building for which water service is permanently disconnected.

SEC. 8.

Section 81005 of the Water Code is amended to read:

81005.

For purposes of this division, the following terms have the following meanings:

(a) “Fund” means the CalConserve Water Use Efficiency Revolving Fund established pursuant to Section 81020.

(b) “Local agency” means a either of the following:

(1) A city, county, city and county, municipal
utility district, community services district, sanitary district, sanitation district, water district as defined in Section 20200, public water system as defined in Section 116275 of the Health and Safety Code, or private water company under the jurisdiction of the Public Utilities Commission.

(2) (A) A county office of education or the governing board of a school district.

(B) For purposes of this division, a customer of a county office of education includes any local educational agency located within the jurisdiction of the county office of education and a customer of the governing board of a school district includes any school located within the school district.

(c) “On-bill financing” means a utility-based method for providing low-interest or no-interest financing for water use efficiency improvements through the monthly utility bill.

(d) “Technical assistance” means costs incurred for providing advice, training, or other assistance to local agencies, such as the following:

(1) Conducting specialized studies to identify water conservation opportunities that meet the intent of Section 81000.

(2) Planning of specific remodeling, renovation, repair, replacement, or other projects related to water conservation.

(3) Developing a project proposal for funding from the fund.

SECTION 1.Section 1101.3 of the Civil Code is amended to read:

1101.3.

For the purposes of this article:

(a)“Commercial real property” means real property that is improved with, or consisting of, a building that is intended for commercial use, including hotels and motels, that is not a single-family residential real property or a multifamily residential real property.

(b)“Multifamily residential real property” means real property that is improved with, or consisting of, a building containing more than one unit that is intended for human habitation, or any mixed residential-commercial buildings or portions thereof that
are intended for human habitation. Multifamily residential real property includes residential hotels but does not include hotels and motels that are not residential hotels.

(c)“Noncompliant plumbing fixture” means any of the following:

(1)Any toilet manufactured to use more than 1.28 gallons of water per flush and does not have a waste evacuation score of 350 grams or more, except a toilet designed for a prison or mental health facility.

(2)Any urinal manufactured to use more than 0.125 gallons of water per flush, except a urinal designed for a prison or mental health facility.

(3)Any showerhead manufactured to have a flow capacity of more than 2.5 gallons of water per minute.

(4)A residential lavatory faucet that emits more than
1.2 gallons of water per minute.

(5)A kitchen faucet that emits more than 1.8 gallons per minute, except that the faucet may have the capacity to increase to 2.2 gallons per minute momentarily for filling pots and pans.

(6)A public lavatory faucet that exceeds 0.5 gallons per minute.

(d)“Single-family residential real property” means any real property that is improved with, or consisting of, a building containing not more than one unit that is intended for
human habitation.

(e)“Water-conserving plumbing fixture” means any fixture that is in compliance with current building standards applicable to a newly constructed real property of the same type.

(f)“Sale or transfer” means the sale or transfer of an entire real property estate or the fee interest in that real property estate and does not include the sale or transfer of a partial interest, including a leasehold.